FSA sets benchmark for regulation

The punishment of Jabre and GLG was not as tough as the watchdog hoped

By

William Hutchings and

Hugh Wheelan in Paris

March 6, 2006 5:00 pm GMT

The UK's Financial Services Authority missed a trick when it fined GLG, a London hedge fund, and its trader, Philippe Jabre, £750,000 (€1.1m) each last week, a banker close to the two said.

The banker said the FSA could have levied its fine a year ago after Jabre admitted he had made an error of judgment. But the regulator tried to ban Jabre from working in the securities industry as well as attempting to fine him £1m and GLG £5m, he claimed.